$GBPUSD - Price at Bullish Breaker - Continue Bullish Momentum?*SMT = Smart Money Theory = everything you think that is not retail related to trading. First, SMT does not believe that triangles, wedges, trendlines, channels, harmonics, etc. has any effect on how price reacts. The second is to recognize that the price is not random, it is set by an algorithm controlled by those that control the asset. The Third thing to remember is price will move toward Liquidity and Balance. That's the basics. The rest is very unique in the vocabulary you need to have and the concepts that wrap around these ideas.
Currently on the daily chart the price has risen above a breaker. The Breaker would be the Low High Lower Low Formation seen here:
And it has come down and touched that breaker region. The breaker would be the last up candle in the low high lower low formation. Which is in the main boxes on the main idea above. I once price touches the breaker it ususually means that there was a missed opportunity for "Smart Money" to remove a short position at that area so they bring the price back down to remove the short positions and give you a "Fake out as if they are going lower.
My stop loss was to take take the highest 4 hour ATR (408) or 40.8 pips and place that below the body of the breaker. I added a few pips just in cases it tried a quick stab stop hunt. As it approaches the 1.35500, 1.36000, or even the 1.36500 mark price has a t endency to sweep those areas 10-40 pips before pulling back. Being that the next daily bearish order block ius neath e 1.36000 I would expect it to sweep at least half of the bearish order block which is approximately 40+ pips on this chart.
Open: 1.34975
SL: 1.34545
Max TP: 1.36470
More than a 3:1 ratio with almost 150 pips to gain if my analysis is correct. This is a swing trade and we're hoping to find the bottom of that swing right now.
FX:GBPUSD
OANDA:GBPUSD
FOREXCOM:GBPUSD
GLOBALPRIME:GBPUSD
EASYMARKETS:GBPUSD
KRAKEN:GBPUSD
FX_IDC:GBPUSD
PEPPERSTONE:GBPUSD
FTX:GBPUSD
EIGHTCAP:GBPUSD
CURRENCYCOM:GBPUSD
